Promotion

Promotion is the fourth major element of marketing mix. After product planning. pricing and
distribution, the next task of marketing manager is to formulate a suitable strategy to
communicate about the product to prospective customers.
Promotion refers to the use of communication with the twin objective of informing potential
customers about a product and persuading them to buy it. In other words, promotion is an
important element of marketing mix by which marketers makes use of various tools of
communication to encourage exchange of goods and services in the market.
Promotion Mix
Promotion mix refers to combination of promotional tools used by an organisation to achieve
its communication objectives. The various promotional tools used are: (a) …
Advertising
Advertising is perhaps the most commonly used tool of promotion. Advertising is a mass
selling technique. It is an activity designed to impress the customer and to improve the sales.
Advertising is an impersonal form of communication, which is paid for by the marketers /
sponsors to promote some goods or services. It provides information or details regarding
benefits, price and availability of the goods and services. The most common modes of
advertising are 'newspapers', 'magazines', 'television', and 'radio'.
According to American Marketing Association (AMA) "Advertising is any paid form of non
personal presentation and promotion of goods, services, or ideas by an identified sponsor."
Features of Advertising
The important distinguishing features of advertising are as follows:
i. Paid Form: Advertising is a paid form of communication. That is, the sponsor has to bear
the cost of communicating with the prospects.
ii. Impersonality: There is no direct face-to-face contact between the prospect and the
advertiser. It is therefore, referred to as impersonal method of promotion. Advertising creates
a monologue and not a dialogue.
iii. Identified Sponsor: Advertising is undertaken by some identified individual or company,
who makes the advertising efforts and also bears the cost of it.
Merits of Advertising
Advertising, as a medium of communication, has the following merits:
i. Mass Reach: Advertising is a medium through which a large number of people can be
reached over a vast geographical area. For example, an advertisement message placed in TV
during cricket match reaches lakhs of its viewers.
ii. Enhancing Customer Satisfaction and Confidence: Advertising creates confidence amongst
prospective buyers as they feel more comfortable and assured about the product quality.
iii. Expressiveness: With the use of special effects that can be created through graphics and
multimedia, even simple products and messages can look very attractive.
iv. Economy: Advertising is the most economical mode of communication, if large number of
people are to be reached. Because of its wide reach, the overall cost of advertising gets spread
as a result the per-unit cost of reach comes low.
Limitations of Advertising
The following are the major limitations of advertising as a tool of promotion:
i. Less Forceful: Advertising is an impersonal form of communication. It is less forceful than
the personal selling as there is no compulsion on the prospects to pay attention to the
message.
ü. Lack of Feedback: The evaluation of the effectiveness of advertising message is very
difficult as there is no immediate and accurate feedback mechanism of the message that is
delivered.
iii. Inflexibility: Advertising is less flexible as the message is standardised and is not tailor
made to the requirements of the different customer groups.
iv. Low Effectiveness: As the volume of advertising is getting more and more expanded it is
becoming difficult to make advertising messages heard by the target prospects. This is
affecting the effectiveness of advertising.
v. Social waste: The expenditure on advertising is a social waste as it adds to the cost,
multiplies the needs of people and undermines social values.
Objection/Criticism to Advertising
Though advertising is one of the most frequently used medium of promotion of goods and
services, it attracts lot of criticism. The opponents of advertising say that the expenditure on
advertising is a social waste as it adds to the cost, multiplies the needs of people and
undermines social values. The proponents, however, argue that advertising is very useful as it
increases the reach, brings the pay unit cost of production down and adds to the growth of the
economy. It is therefore, important to examine the major criticisms against advertising and
see the extent to which these are true. This is taken up as follows:
1. Adds to Cost: The opponents of advertising argue that advertising unnecessarily adds to the
cost of product, which is ultimately passed on to the buyers in the form of high prices. For
example, amount spent on advertisement on TV during prime time and in leading newspaper
may cost large amount of money. The money spent adds to the cost, which in an important
factor in fixation of the price of a product.
On the other hand, advertisement helps to increase the demand for the product as large
number of potential buyers come to know about the availability of the products, its features,
etc. which result in higher demand. The increased demand leads to higher production, which
brings with it the economies of scale. As a result, the per unit cost of production comes down
as the total cost is divided by larger number of units. Thus, advertisement in fact lessens the
burden of consumers rather than adding to it.
2. Undermines Social Values: Another important criticism of advertising is that it undermines
social values and promotes materialism. It leads to higher consumerism among the public at
large which leads to unnecessary spending.
This criticism is not entirely true. Advertisement in fact helps buyers by informing them
about the new products, which may be improvement over the existing products. Moreover,
advertising only informs the consumers and final choice to buy or not depends on them.
3. Confuses the Buyers: The number of advertisements shown in TV and Radio are increasing
day by day. Each brand claims to be better than the other. For example, there are various
advertisements for detergent powder like Surf, Tide, Vanish, etc. Each brand claims to be the
best brand. Such similar claims confuse the buyers and it becomes very difficult for them to
make choice.
However, supporters of advertisement argue that consumers are all rational human beings and
can make decisions for purchase of products by analysing price, style, size, etc. Thus the
buyers can clear their confusion by analysing the information provided on the advertisements
and other sources before taking a decision to purchase a product. However, this criticism
cannot be completely overruled.
4. Encourages Sale of Inferior Products: It is often criticised that advertising does not
distinguish between superior and inferior products and persuade people to purchase even the
inferior products.
However, inferiority or superiority of a product depends on the economic status and
preferences of the target customers. Advertisements sell products of a given quality and the
buyers will buy if it suits their requirements. The advertisement should not make any false
claim about the quality of a product. If a firm makes a false claim it can be prosecuted for the
same.
5. Some Advertisements are in Bad Taste: Another objection to advertisement is that. some
advertisement make use of indecent language and even convey bad message in order to
attract customers. For example, advertisements showing women dancing when not required
or running after a man because he is wearing a particular suit or using a particular perfume
are certainly not good. Some advertisements distort the relationship like employer employee
and are quite offensive.
However, most of the criticism against advertising are not entirely true. In the changed
economic environment of globalisation, advertising is considered as an important tool of
marketing. It helps a firm in effectively communicating with its target market, increasing the
sale and there by reducing the per unit cost of production. It is not a social waste, rather it
adds value to the social cause by giving a boost to production and generating employment.
There may be some chances of misuse of advertising as a tool, which can be properly
safeguarded by the law or by developing a code of conduct by the advertisers.

Personal Selling
Personal selling refers to personal form of communication with one or more prospective
customers for the purpose of making sales. It is one of the elements of promotional mix.
Companies appoint sales persons to contact prospective buyers and create awareness about
the product and develop product preferences with the aim of making sale.
Features of Personal Selling
i. Personal Form: In personal selling a direct face-to-face dialogue takes place between the
seller and the buyer.
ü. Development of Relationship: Personal selling allows a salesperson to develop personal
relationships with the prospective customers, which may become important in making sale.
Merits of Personal Selling
i Flexibility: There is lot of flexibility in personal selling. The sales presentation can be
adjusted to fit the specific needs of the individual.
ii. Direct Feedback: As there is direct face-to-face communication in personal selling, it is
possible to take a direct feed back from the customer and to adapt the presentation according
to the needs of the prospects.
iii. Minimum Wastage: The wastage of efforts in personal selling can be minimised if a
company can decide the target customers before making any contact with them.
Qualities of a Good Salesman
The essential qualities of a good salesman are:
1. Physical qualities: A good salesman should possess healthy physique and attractive
personality. As salesmen have to do a lot of travelling, only a physically fit person can
perform these activities effectively.
2. Psychological qualities: A good salesman must have a high degree of intelligence and
imagination. He should be sweet natured, mentally healthy and good in his behaviour.
3. Technical quality: A good salesman should have full technical knowledge about the
product and its utility. He should have good understanding about his company and its
philosophy and policies.
4. Good communication skills: A salesman should have good communication skills. He
should not only be a good speaker but also a good listener, counsellor and persuader. He
should have the skills to make the people understand what he wants to conve
5. Honesty: A good salesman should posses high level of integrity and honesty. He should be
a role model to others regarding the ethics and values. He should not provide false
information to customers just to push the product.
6. Courtesy: A salesman must be polite, sympathetic and courteous to his customers.
7. Persistent: A salesman must have the ability to convince the prospective customers with
persistent efforts. He should not get tired with his customers when they make so many
queries.
8. Capacity to inspire trust: A salesman should be an effective motivator. He should
understand the needs of prospective customers and motivate them to buy the product.
Role of Personal Selling
Personal selling plays a very important role in the marketing of goods and services. The
importance of personal selling to businessmen, customers and society may be described as
below.
Importance to Businessmen
Personal selling is a powerful tool for creating demand for a firm's products and increasing
their sale. The importance of personal selling to a business organisation may be described as
follows:
i. Effective Promotional Tool: Personal selling is very effective promotional tool, which helps
in influencing the prospects about the merits of a product and thereby increasing its sale.
ii. Flexible Tool: Personal selling is more flexible than other tools of promotion such as
advertising and sales promotion. It helps business persons in adopting their offer in varying
purchase situations.
iii. Minimises Wastage of Efforts: Compared with other tools of promotion, the possibility of
wastage of efforts in personal selling is minimum. This helps the business persons in bringing
economy in their efforts.
iv. Consumer Attention: There is an opportunity to detect the loss of consumer attention and
interest in a personal selling situation. This helps a business person in successfully
completing the sale.
vi. Personal Rapport: Development of personal rapport with customers increases the
competitive strength of a business organisation.
vii. Role in Introduction Stage: Personal selling plays very important role in the introduction
stage of a new product as it helps in persuading customers about the merits of the product.
viii. Link with Customers: Sales people play three different roles, namely persuasive role,
service role and informative role and thereby link a business firm to its customers.
Importance to Customers
This role of personal selling becomes more important for the illiterate and rural customers
who do not have any other means of getting product information. The customers are
benefited by personal selling in the following ways:
i. Help in Identifying Needs: Personal selling helps the customers in identifying their needs
and wants and in knowing how these can best be satisfied.
ii. Latest Market Information: Customers get latest market information regarding price
changes, product availability and shortages and new product introduction, which help them in
taking the purchase decisions in a better way.
iii. Expert Advice: Customers get expert advice and guidance in purchasing various goods
and services which help them in making better purchase.
iv. Induces Customers: Personal selling induces customers to purchase new products that
satisfy their needs in a better way and thereby helps in improving their standards of living.
Importance to Society
Personal selling plays a very productive role in the economic progress of a society. The more
specific benefits of personal selling to a society are as follows:
i. Converts Latest Demand: Personal selling converts latest demand into effective demand.
Effective demand raises the production, which results in more jobs and increased incomes.
That is how economic growth is influenced by personal selling.
ii. Employment Opportunities: Personal selling offers greater income and employment
opportunities to the unemployed youth.
iii. Career Opportunities: Personal selling provides attractive career with greater opportunities
for advancement and job satisfaction as well as security, respect, variety, interest and
independence to young men and women.
iv. Mobility of Sales People: There is a greater degree of mobility of sales people which
promotes travel and tourism in the country.
ν. Product Standardisation: Personal selling increases product standardisation and uniformity
in consumption pattern in a diverse society.
Sales Promotion
Sales promotion refers to short-term incentives, which are designed to encourage the buyers
to make immediate purchase of a product or service. These include all promotional efforts
other than advertising, personal selling and publicity, used by a company to boost its sales.
Sales promotion activities include offering cash discounts, sales contests, free gift offers, and
free sample distribution. Sales promotion is usually undertaken to supplement other
promotional efforts such as advertising and personal selling.
In the words of G. W. Hopkins, "sales promotion is an organised effort applied to the selling
job to secure the greatest effectiveness for advertising and for dealers help".
Merits of Sales Promotion
i. Attention Value: Sales promotion activities attract attention of the people because of the use
of incentives.
ii. Useful in New Product Launch: Sales promotion tools can be very effective at the time of
introduction of a new product in the market. It induces people to break away from their
regular buying behaviour and try the new product.
iii. Synergy in Total Promotional Efforts: Sales promotion activities are designed to
supplement the personal selling and advertising efforts used by a firm. It adds to the overall
effectiveness of the promotional efforts of a firm.
Limitation of Sales Promotion
i. Reflects Crisis: If a firm frequently relies on sales promotion, it gives an impression to the
general public that there is less demand for its products.
ii. Spoils Product Image: Use of sales promotion tools may affect the image of a product. The
buyers may start feeling that the product is not of good quality or is not appropriately priced.
iii. Short Term Use: Sales promotion techniques are generally used for a short period only
Commonly used Sales Promotion Activities
1. Rebate: It refers to offering products at special prices, to clear off excess inventory. For
example, Maruti offers to sell a particular model of car at a discount of 25,000, during diwali
season.
2. Discount: It refers to offering products at less than list price. Example, Bata offers a flat
discount of 30% on all its products.
3. Refunds: Under this method, a part of the product price is refunded to the customer on
showing proof of purchase on return of empty foils or wrapper. This is commonly used by
food product companies, to boost their sales. For example, 4 will be refunded on returning the
empty wrappers of Uncle Chips.
4. Product Combinations: It refers to offering another product as gift along with the purchase
of a main product. For example, offer of a pack of 1½ kg of rice with the purchase of a bag of
Aatta, or 1 GB memory card free with mobile or toothbrush free with toothpaste, etc.
5. Quantity Gift: It refers to offering some extra quantity of the main product as a gift to the
customers. For example, a shaving cream's offer of '40% Extra' or A Hotel's offer of "Take a 2
Night 3 Days Package At the Hotel and Get an Extra Night Stay At Just 1,000" or 'Buy 2 Get
1 Free' offer of a marketer of shirts.
6. Instant Draws and Assigned Gift: under this method, customer is offered facility like
scratch a card to win instant gifts on the purchase of a product. For example, 'Scratch a Card'
or 'Burst a Cracker' and instantly win a Refrigerator, Car, T-shirt, Computer, with the
purchase of a TV.
7. Lucky Draw: Under this method, customer is given a coupon on purchase of a product and
the lucky winners are decided by draw of lots. For example, the offer of a toilet soap to win a
gold coin on lucky draw or coupon for free petrol on purchase of certain quantity of petrol
from given petrol pump or lucky draw coupon on purchase of easy undergarment and win a
car offer.
8. Usable Benefit: Under this method, a coupon or discount voucher is given to consumer on
purchase of a product to avail any special benefit or discount. For example, 'Purchase goods
worth 3,000 and get a holiday package worth 3,000 free'.
9. Full finance@0%: Under this method, product is sold on instalment basis at zero percent
rate of interest. Many marketers of consumer durables such as Electronic goods, automobiles
etc offer easy financing schemes such as '24 easy instalments at 0% interest. However, one
should be careful about the hidden charges in such offer.
10. Sampling: It refers to offering of free sample of a product, say a detergent powder or
tooth paste to potential customers at the time of launch of a new brand.
11. Contests: Under this method, consumers participate in competitive events organised by
firms and winners are given prizes. For example, competitive events involving application of
skills or luck, say solving a quiz or answering some questions or writing a good slogan for a
company, etc.
Public Relation
Public relation is the deliberate, planned and sustained effort to establish and maintain mutual
understanding between an organisation and its public. The concept of Public Relations
involves a variety of programmes to promote and protect a company's image or its products.
It means to strengthen relations with various stake holders like customers, shareholders,
employees, suppliers, investors etc. It is done through - news, speeches by corporate leaders,
organizing events like sports events, concerts, seminars etc.
Public Association Relations' defined public relations as "The art and social science of
analyzing trends, predicting their consequences, counselling organizational leaders and
implementing planned programme of action which will …
mix of promoting specific products, services and events and promoting the overall brand of
an organization, which is an ongoing tact.

Role of Public Relation

i. Smooth functioning of business and achievement of objectives.
ii. Building corporate image that affects favourably on its products. For example, upkeep of
parks, gardens, sponsoring sports activities, etc.
iii. Creating interest in the established product and help in launching products.
iv. Helping to understand public opinion about the organisation.
Tools of Public Relation
Companies can use the following tools to improve their relations with public:
1. Press Release: It means announcement of an event, performance or other newsworthy
items issued to the press by a public relations officer of an organisation.
2. Press Kit: It is a comprehensive package of promotional materials provided to members
containing information about company's products and services. It includes a brief biography,
information of senior executives, comments from customers, pictures of various
achievements, etc.
3. Brochure: Brochure is a booklet published by the organisation which contains the
organisation's background, its ethics, vision, mission, its past, present and future projects, etc.
4. News Letter: News letter is a periodically sent publication mentioning the various activities
conducted by the organisation during a particular period. Its content is in written form which
is less formal and letter-like.
5. Annual Reports: An annual report is a comprehensive report, which describes the
operations and financial activities of the company throughout the preceding year.
6. Conferences and Seminars: They are conducted for making people aware about the
organisation. For example, many companies arrange customer meet to inform their
prospective plans.
7. Events: Events refer to organising press conferences, multimedia presentation, conducting
tournaments, stage shows, etc